Aussie Bond futures were resilient.....>

AUSSIE BONDS: Aussie Bond futures were resilient to the latest round of risk on

flows triggered by comments from U.S. President Trump. Worth noting that NAB now

look for the RBA to hike in H220, they previously expected 1 25bp hike in each

of Q219 & Q319. 

- Early trade saw 3-Year futures SYCOM low hold, before front contracts ticked

higher through the second half of the day. YM/XM a touch flatter at 48.25, while

the cash 3-/10-Year yield differential last trades at 49.0bp.

- White & red Bills trade unchanged to 2 ticks lower last. A bit of focus has

crept into the Aussie x-ccy basis swap space over the last 36 hours or so, as we

move towards calendar year end. AU/US 3-Month x-ccy basis swaps have moved

higher. 3-Month BBSW fixing has risen to 2.0000% from the 1.9500% seen at

November's final fix. Elsewhere the RBA's reverse repo rates have squeezed

higher, with today's 30-day ops conducted at 2.157%.

- Latest AOFM ACGB auction was ignored, with the Bond not featuring in the

deliverable basket for XMZ8 (although it will be the next Bond to move into the

XM deliverable basket).